Economics Minister Kuo Jyh-huei  (郭智輝) announced on Wednesday during a Legislative session that Taiwan will prioritize solar energy and hydroelectricity to meet the burgeoning power needs of AI technologies. As Taiwan solidifies its key position in AI development, the country is preparing for a significant surge in electricity demand expected between 2025 and 2028. 

Kuo says the number of AI data centers established in Taiwan will be a key determinant of growth in AI-related electricity consumption. He adds that the Economics Ministry is collaborating with Taiwan Power Company to reassess future electricity demands. 

Kuo says because constructing new power plants would require approximately six years, Taiwan will instead focus on expanding solar energy capabilities, energy storage, and pumped hydro systems to deal with potential shortfalls.

Kuo says a proposal will be presented to the Legislature’s Economic Committee by mid-July, before the conclusion of the current legislative session. Kuo also responded to questions from opposition legislators about the extension of nuclear power plant operations. Kuo says the third nuclear plant will serve as a backup to accommodate the spike in AI power needs. He added that the ministry is monitoring the development of small modular reactors (SMRs). If nuclear waste issues can be resolved or safely managed, the inclusion of SMRs in Taiwan’s energy strategy will be considered.